French developer announces massive green hydrogen project in Germany to feed into H2 pipeline network
Lhyfe plans to bring its 800MW facility in Lubmin on line by 2029
French hydrogen project developer Lhyfe has announced plans to build a 800MW green H2 project in Lubmin, Germany.
The developer aims to supply volumes into the country’s national network of hydrogen pipelines, which the federal government announced would cost €19.8bn to build out by 2032.
However, the German cabinet is yet to confirm how this network will be funded, and who will bear these costs, particularly given a recent court ruling struck down the transfer of €60bn to its Climate and Transformation Fund (KTF) — which was due to finance a range of clean energy initiatives.
The European Commission has also this week published its sixth list of Projects of Common or Mutual Interest, or key cross-border infrastructure including hydrogen pipelines, many crossing into Germany, which are eligible for accelerated permitting and funding via the Connecting Europe Facility.
However, although Lhyfe schedules start-up of its 330-tonne-a-day H2 facility by 2029, details on how the project will be put together are murky.
The French company will site its electrolysers at the location of a former nuclear power plant, which it notes “benefits from an extra-high voltage grid connection operated by 50Hertz, the transmission system operator, which already operates a transformer station in Lubmin and will feed all the required electricity power [sic] to produce hydrogen”.
This would indicate that Lhyfe plans to primarily source the renewable power for electrolysis from the grid and cover it via a power purchase agreement (PPA), rather than directly building new wind or solar capacity to supply the plant.
However, the project will start producing hydrogen a year before the EU requires hourly matching of renewable power generation to H2 production for it to count as a renewable fuel of non-biological origin (RFNBO), and will also have to source its electricity from assets commissioned within three years of its own start-up.
The Lubmin project would bring Lhyfe’s pipeline of planned electrolysis capacity up to 4GW, although much of this is yet to reach a final investment decision.
The developer, which has pioneered offshore green hydrogen production in Europe, this week won a call for proposals at Saint-Nazaire in France to commission a 210MW onshore H2 project by 2028.
Lhyfe is also working on a 70MW facility at the city of Perl in Germany, which would feed 30 tonnes of H2 a day into the planned French-German mosaHYc pipeline network, which was listed among the European Commission’s list of PCIs.